Initial selection is... not very valuable. It certainly dismays those who are not determined (it takes about a year from the day you walk into a recruiters office to OCS), but leadership cannot be screened for.
My OCS class started with 128, only 87 commissioned as 2lt's. Many of those would did not make it went to good schools, got good grades had fine jobs ect.
Our distinguished leader grad failed out of college the first time and finished at some tec school no one has never heard of. But I would follow him into anything. That just goes to prove being a leader is completely different than the resume padding kids do now a days.
I have a masters in Middle eastern studies and know arabic, does that make me a good officer? No. Does charisma matter? No.
IMHO It all comes down to two things. 1st. I am willing to suffer for those around me. 2nd can I make the hard decision at the right time.
Few have it. After 12 weeks you know who do.
Now to adress your other question, what happens to those who fail. In most cases you get recycled and can class up with another company. Some chapter out of the army, some go AIT. If you cannot get through OCS the second time you need to be let go. It is just not that hard of a course. I am sure it is crushing to fail.
The Initial selection needs to be tighter. But by what metrics?
Also think of the needs of the Army - does that reserve quartermaster need to be a stud?
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